We Discuss Why Dollar Industries Limited's (NSE:DOLLAR) CEO Compensation May Be Closely Reviewed
Key Insights
- Dollar Industries' Annual General Meeting to take place on 25th of July
- Salary of ₹18.0m is part of CEO Vinod Gupta's total remuneration
- Total compensation is similar to the industry average
- Dollar Industries' three-year loss to shareholders was 7.2% while its EPS was down 15% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at Dollar Industries Limited (NSE:DOLLAR) recently. At the upcoming AGM on 25th of July, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.
View our latest analysis for Dollar Industries
How Does Total Compensation For Vinod Gupta Compare With Other Companies In The Industry?
According to our data, Dollar Industries Limited has a market capitalization of ₹23b, and paid its CEO total annual compensation worth ₹20m over the year to March 2025. This was the same as last year. In particular, the salary of ₹18.0m, makes up a huge portion of the total compensation being paid to the CEO.
On examining similar-sized companies in the Indian Luxury industry with market capitalizations between ₹8.6b and ₹34b, we discovered that the median CEO total compensation of that group was ₹23m. This suggests that Dollar Industries remunerates its CEO largely in line with the industry average. Furthermore, Vinod Gupta directly owns ₹917m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹18m | ₹18m | 92% |
| Other | ₹1.5m | ₹1.5m | 8% |
| Total Compensation | ₹20m | ₹20m | 100% |
Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2% of the pie. There isn't a significant difference between Dollar Industries and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Dollar Industries Limited's Growth
Over the last three years, Dollar Industries Limited has shrunk its earnings per share by 15% per year. In the last year, its revenue is up 8.8%.
The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Dollar Industries Limited Been A Good Investment?
With a three year total loss of 7.2% for the shareholders, Dollar Industries Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Dollar Industries that investors should look into moving forward.
Switching gears from Dollar Industries, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
Valuation is complex, but we're here to simplify it.
Discover if Dollar Industries might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.